Question 1

Most participating policies are sold by:

Accepted Answer

A) federal government agencies. 
B) state insurance commissioners. 
C) mutual life insurance companies. 
D) stock life insurance companies. 
E) investment banks. 
A) federal government agencies. 
B) state insurance commissioners. 
C) mutual life insurance companies. 
D) stock life insurance companies. 
E) investment banks.

Question 2

Which of the following attributes would not be used by an underwriter to determine the appropriate premiums to charge for insurance?

Accepted Answer

A) Marital status 
B) Gender 
C) Health 
D) Age 
E) Occupation 
A) Marital status 
B) Gender 
C) Health 
D) Age 
E) Occupation

Question 3

Who has the greatest need for life insurance?

Accepted Answer

A) Households with small children 
B) Singles living alone 
C) Singles living with parents 
D) Dual income couple 
E) Retired person 
A) Households with small children 
B) Singles living alone 
C) Singles living with parents 
D) Dual income couple 
E) Retired person

Question 4

A two-earner couple likely will have:

Accepted Answer

A) the greatest need for life insurance. 
B) no need for life insurance. 
C) a moderate need for life insurance,especially if they have a mortgage. 
D) the greatest need for an annuity. 
E) the exact same life insurance needs as single persons living alone. 
A) the greatest need for life insurance. 
B) no need for life insurance. 
C) a moderate need for life insurance,especially if they have a mortgage. 
D) the greatest need for an annuity. 
E) the exact same life insurance needs as single persons living alone.

Question 5

After determining that you need life insurance,you should then:

Accepted Answer

A) consult a local insurance company agent. 
B) buy as much life insurance as you can afford. 
C) estimate your life insurance requirements. 
D) determine your life insurance objectives. 
E) evaluate the ratings of the insurance company. 
A) consult a local insurance company agent. 
B) buy as much life insurance as you can afford. 
C) estimate your life insurance requirements. 
D) determine your life insurance objectives. 
E) evaluate the ratings of the insurance company.

Question 6

If you have no dependents and your spouse earns as much as you do,you have simple insurance needs.

Accepted Answer

A) True 
 B)False

Question 7

Which statement is correct about whole life insurance?

Accepted Answer

A) At first,it is cheaper than term life. 
B) It builds up cash value. 
C) The premiums increase with your age. 
D) It is the best choice for people who plan to keep the policy for a short term. 
E) It is the same thing as term life insurance. 
A) At first,it is cheaper than term life. 
B) It builds up cash value. 
C) The premiums increase with your age. 
D) It is the best choice for people who plan to keep the policy for a short term. 
E) It is the same thing as term life insurance.

Question 8

Single persons living alone usually have little or no need for life insurance.

Accepted Answer

A) True 
 B)False

Question 9

Usually,there is no time limit on reinstatement of a lapsed life insurance policy.

Accepted Answer

A) True 
 B)False

Question 10

Households with small children usually have the greatest need for life insurance.

Accepted Answer

A) True 
 B)False

Question 11

When your life insurance objectives change,you should review the policy carefully and discuss its provisions with your agent.

Accepted Answer

A) True 
 B)False

Question 12

In determining the cost of insurance,if your insurance agent does not give you an interest-adjusted index upon request,then your best bet is to:

Accepted Answer

A) buy the policy anyway. 
B) look for another agent. 
C) tell the agent that you are still thinking. 
D) tell the agent you will buy it later. 
E) complain to the Better Business Bureau. 
A) buy the policy anyway. 
B) look for another agent. 
C) tell the agent that you are still thinking. 
D) tell the agent you will buy it later. 
E) complain to the Better Business Bureau.

Question 13

Jeff Willis has five kids and a lot more debt than a typical family.What method would probably be the best method for him to use to calculate his insurance needs?

Accepted Answer

A) Easy method 
B) DINK method 
C) Nonworking spouse method 
D) Family need method 
E) Soccer mom method 
A) Easy method 
B) DINK method 
C) Nonworking spouse method 
D) Family need method 
E) Soccer mom method

Question 14

Lisa Smith has her age listed on her driver's license as being three years younger than it actually is.This is also how old she tells her insurance company she is.Her insurance company has discovered she lied about her age.What provision of her life insurance contract states that her benefits will be what her premium would have bought if she had been truthful about her age?

Accepted Answer

A) Policy loan 
B) Misstatement of age 
C) Cost-of-living protection 
D) Guaranteed insurability 
E) Grace period 
A) Policy loan 
B) Misstatement of age 
C) Cost-of-living protection 
D) Guaranteed insurability 
E) Grace period

Question 15

Term insurance is protection for a specified period of time,usually:

Accepted Answer

A) 1 year 
B) 5 years 
C) 10 years 
D) 20 years 
E) Any of these intervals are offered 
A) 1 year 
B) 5 years 
C) 10 years 
D) 20 years 
E) Any of these intervals are offered

Question 16

Which method of determining life insurance needs is designed specifically for a working couple with no dependents?

Accepted Answer

A) The multiple of income method 
B) Easy method 
C) "Nonworking" spouse method 
D) Family need method 
E) DINK method 
A) The multiple of income method 
B) Easy method 
C) "Nonworking" spouse method 
D) Family need method 
E) DINK method

Question 17

The life expectancy of a female at the age of 30 is 52.0 years.It means that:

Accepted Answer

A) a 30-year-old female has the highest probability of dying. 
B) a 30-year-old female has the highest probability of living. 
C) females alive at 30 years of age are expected to live an additional 52 years on average. 
D) 52.0 is the average age at which all females,age 30,will die. 
E) very few 30-year-old females will live past the age of 82. 
A) a 30-year-old female has the highest probability of dying. 
B) a 30-year-old female has the highest probability of living. 
C) females alive at 30 years of age are expected to live an additional 52 years on average. 
D) 52.0 is the average age at which all females,age 30,will die. 
E) very few 30-year-old females will live past the age of 82.

Question 18

What percent of all applicants who apply for life insurance are found to be insurable?

Accepted Answer

A) 58 
B) 68 
C) 78 
D) 88 
E) 98 
A) 58 
B) 68 
C) 78 
D) 88 
E) 98

Question 19

Catherine Carey has made the choice to stay home and raise her three kids while her husband works.She wants to determine her insurance needs.What method was specifically designed for someone in her situation?

Accepted Answer

A) Easy method 
B) DINK method 
C) Nonworking spouse method 
D) Family need method 
E) Soccer mom method 
A) Easy method 
B) DINK method 
C) Nonworking spouse method 
D) Family need method 
E) Soccer mom method

Question 20

One of the ten golden rules when buying life insurance is to:

Accepted Answer

A) buy from a company licensed in your state. 
B) buy more life insurance than you need. 
C) select an agent who is incompetent. 
D) ask about higher premium rates for nonsmokers. 
E) not worry about reading and understanding your policy. 
A) buy from a company licensed in your state. 
B) buy more life insurance than you need. 
C) select an agent who is incompetent. 
D) ask about higher premium rates for nonsmokers. 
E) not worry about reading and understanding your policy.

Most participating policies are sold by:

Which of the following attributes would not be used by an underwriter to determine the appropriate premiums to charge for insurance?

Who has the greatest need for life insurance?

A two-earner couple likely will have:

After determining that you need life insurance,you should then:

If you have no dependents and your spouse earns as much as you do,you have simple insurance needs.

Which statement is correct about whole life insurance?

Single persons living alone usually have little or no need for life insurance.

Usually,there is no time limit on reinstatement of a lapsed life insurance policy.

Households with small children usually have the greatest need for life insurance.

When your life insurance objectives change,you should review the policy carefully and discuss its provisions with your agent.

In determining the cost of insurance,if your insurance agent does not give you an interest-adjusted index upon request,then your best bet is to:

Jeff Willis has five kids and a lot more debt than a typical family.What method would probably be the best method for him to use to calculate his insurance needs?

Term insurance is protection for a specified period of time,usually:

Which method of determining life insurance needs is designed specifically for a working couple with no dependents?

The life expectancy of a female at the age of 30 is 52.0 years.It means that:

What percent of all applicants who apply for life insurance are found to be insurable?

Catherine Carey has made the choice to stay home and raise her three kids while her husband works.She wants to determine her insurance needs.What method was specifically designed for someone in her situation?

One of the ten golden rules when buying life insurance is to:

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

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Exam 12: Life Insurance

Most participating policies are sold by:

Which of the following attributes would not be used by an underwriter to determine the appropriate premiums to charge for insurance?

Who has the greatest need for life insurance?

A two-earner couple likely will have:

After determining that you need life insurance,you should then:

If you have no dependents and your spouse earns as much as you do,you have simple insurance needs.

Which statement is correct about whole life insurance?

Single persons living alone usually have little or no need for life insurance.

Usually,there is no time limit on reinstatement of a lapsed life insurance policy.

Households with small children usually have the greatest need for life insurance.

When your life insurance objectives change,you should review the policy carefully and discuss its provisions with your agent.

In determining the cost of insurance,if your insurance agent does not give you an interest-adjusted index upon request,then your best bet is to:

Jeff Willis has five kids and a lot more debt than a typical family.What method would probably be the best method for him to use to calculate his insurance needs?

Term insurance is protection for a specified period of time,usually:

Which method of determining life insurance needs is designed specifically for a working couple with no dependents?

The life expectancy of a female at the age of 30 is 52.0 years.It means that:

What percent of all applicants who apply for life insurance are found to be insurable?

Catherine Carey has made the choice to stay home and raise her three kids while her husband works.She wants to determine her insurance needs.What method was specifically designed for someone in her situation?

One of the ten golden rules when buying life insurance is to:

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters